New Update
The future
Outlook: 1999-2000
and beyond
The forecast for 1999-2000 and beyond is based on IDC’s outlook for the future as
highlighted below:
 Economy
in that direction. In the first two months of 1999-2000, there has been an improvement in
diesel consumption, steel output, cement consumption and railway freight. IDC believes
that these four indicators are a good measure of the state of the economy.
The worldwide GDP is expected to improve from 2 percent in 1998 to 2.5 percent in 1999.
 Political Scenario
year. The elections due in September-October 1999 will lead to a temporary slowdown.
However, some stability is expected on the political front thereafter.
 IT Spending
However, the directive issued by the Central Vigilance Commission will have only a limited
impact till 2000 and hence proliferation among smaller banks will take some more time.
growth. The year 2000 will see a further spurt in corporate buying.
products like PCs and peripherals. Although these segments will continue to grow at rates
above than the overall average, IDC believes that the growth rates might taper off a bit
from 1999.
- Due to low current penetration, the Internet subscriber base will show dramatic growths
in the short term. However, access charges are unlikely to change dramatically, thus
curbing the growth of Internet subscribers to an extent.
IT Market Forecast,1999-2000 and 2000-01 (Rs. Crore) |
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Segment | 1999-2000 | Annual Growth (%) | 2000-01 | Annual Growth (%) |
Personal Computers | 4901.2 | 22.2% | 6246.3 | 27.4% |
Servers (Other than PC Servers) |
394.0 | -6.4% | 414.2 | 5.1% |
Traditional Workstations | 104.5 | -4.4% | 96.8 | -7.3% |
Peripherals | 1317.8 | 7.1% | 1513.0 | 14.8% |
Datacom Products | 1255.8 | 37.6% | 1706.3 | 35.9% |
Hardware | 7973.3 | 19.3% | 9976.6 | 25.1% |
Packaged Software | 1554.7 | 16.5% | 1824.5 | 17.4% |
Services | 4012.5 | 20.7% | 4863.3 | 21.2% |
Others* | 1685.8 | 22.1% | 2076.9 | 23.2% |
Total IT Market | 15226.3 | 19.7% | 18741.2 | 23.1% |
* includes consumables and individual training Source: IDC (India) Limited, 1999 |
The Future |